Advice

[Roaming Reptiles]

Does anyone have any advice on where to start to get a businness License in California?

 

[Nigel4less]

Go to your local City Hall or your Cities Administration building. They will be able to guide you smoothly through the entire process.

 

[Snowy & Petra de Gecko]

Oh, Boy! Oh, Boy! Oh, Boy!

Finally, somethin that I know a wee bit about!!!

I am so excited I cannot hide it!!!

Finally, a question on Geckoforums, that I don't have to guess about or even ponder.

Well actually all of my other posts are based on what I have read recently and what I have recently seen.

Oh, but this question.

I just can't wait.

Nigel4less is correct.

The Great State of Californa does not issue Business Licenses.

Those are issued by the City in which you live.

And that is about it.

Now, the reporting of the income and any tax consequences of your business activities is a different matter. But, alass I do not think that you will want to be C Corporation, or an S Corporation, or a Partnership or even an LLC.

For any of those entities, or for tax purposes they are really "people", you have to file with the Secretary of State.

But, I doubt that you will need to do that to report any taxable income.

Most people will simply file a Schedule C along with their 1040 and 540 or should I say your federal and California income tax returns, respectively.

Now, if you are in a Trade or Business then, now you are talking.

Then you get to report your income, take expenses and report depreciation expenses. Oh, what fun!!!

And Don't forget the federal Self-Employment tax at 15.2% of that income. Well off the top of my head it is 15.2% of your net self-employment income from your Trade or Business activities.

Wow!!! This is almost as much fun as being at work.

Now, when you get your business license, I just want you to know that in some cases the Great State of California is requesting that Cities report to the Franchise Tax Board (or commonly referred to as the FTB) any new businesses.

And since California needs all the Revenue or should I say taxes that it can get, you can expect that if you do not file a Schedule C with your 2008 tax return that the FTB will or could or might send you a notice asking about your Business Activities.

This free tax advice was indirectly provided by Snowy & Petra de Gecko. And since it was free you get what you have paid for.

But, you should be able to rely on it because it is only basic advice.

Have fun.

 

[thestack510]

If you're just breeding as a hobby there is no need for a business license. CA has no laws specific to breeding Leos, that I am aware of. He who acts like a business gets taxed like a business.

 

[Snowy & Petra de Gecko]

Hobby or a Business

TheStack510 is also correct.

But, it really is "He who acts like a business gets to deduct expenses like a business."

If you have a Hobby and the income from the Hobby exceeds the expenses then you are suppose to report the difference as income on your income tax return. A Hobby activity does not rise to the level of a trade or business. And there are special rules as to the types of expenses you can deduct.

So if you have lots of expenses but, no income and your activity is a Hobby ... you don't get to deduct the "all" of the expenses and probably will not show a loss but, show a big zero.

Now a business, even a Schedule C, can deduct losses against any other income. So an individual with wages could deduct the Schedule C losses on their individual income tax return.

As to whether or not a Hobby Activity can be a trade or business that is a question of the facts and circumstances of each case. You may have to keep detailed records but, the general rule could be "If it walks like a duck, quacks like a duck, and looks like a duck then, it is probably a duck."

 

[Gecko]

In case anyone get's the bright idea to become a buissness and declare a loss every year . . . . the IRS isn't stupid.

Unless your doing a large volume I'd personally just stay in the hobby area.